Congressman Ritchie Torres not too long ago shared his request for impartial investigations into the operations of the U.S. Securities Change Fee (SEC), criticizing what he perceives as a disorganized and overbearing strategy towards the burgeoning cryptocurrency trade.
Prometheum: A Controversial Resolution
A major concern addressed within the Congressman’s letters was the SEC’s contentious resolution to grant a particular goal broker-dealer (SPBD) license to Prometheum.
The buying and selling platform, which paradoxically doesn’t facilitate the buying and selling of digital property, has been labeled by Torres as a Potemkin platform. This time period implies that it serves extra as a dialogue level for detractors of the crypto trade quite than functioning as a reliable buying and selling platform for crypto customers.
Is Regulatory Readability a Mirage?
Torres identified the dearth of clear regulation and steerage, which he believes is essential for compliance inside the trade. He argued that the SEC’s most well-liked mode of communication has been neither by way of express guidelines nor steerage, however quite by way of enforcement.
This strategy, he famous, has led to an absence of readability relating to the applying of securities legislation to digital property, leaving trade individuals guessing concerning the guidelines they need to be following.
The Politicization of the Registration Course of
The Congressman additionally voiced his considerations over what he sees as a politically motivated resolution by SEC Chair Gary Gensler. In response to Torres, Gensler’s transfer to license Prometheum represents an unwarranted politicization of the registration course of – a stage of involvement that’s not often seen inside the SEC’s historic operations.
Requires Rigorous, Workable Registration Processes
Torres urgently known as for an impartial overview of the SEC’s methods in direction of digital property. He particularly requested an intensive examination of the SEC’s failure to determine a sturdy, possible course of for the registration of real digital asset platforms.
Moreover, he urged a probe into what he described as the bizarre backroom deal brokered by the SEC with Prometheum. Curiously, this plea for an inquiry into the SEC’s dealings comes within the wake of Ripple’s current victory over the notorious SEC in a lawsuit that had been ongoing since 2020.